Lead

China's economy grew 5 per cent year on year in the first quarter of 2026, according to data released by the National Bureau of Statistics (NBS), beating economists' forecasts and marking an acceleration from the 5 per cent expansion recorded in the final quarter of 2025. The figure, released on Thursday, exceeded the 86 per cent median forecast from a poll of economists conducted by financial data provider Wind.

The reading puts Beijing on track to meet its annual growth target of around 5 per cent, even as analysts caution that the ongoing US-Israeli war on Iran and the resulting blockades of shipping through the Strait of Hormuz could create significant headwinds in the months ahead.

Coverage Comparison

Reporting on the GDP release has been largely consistent across sources, with both the headline growth figure and the underlying retail sales data widely confirmed. The NBS reported that retail sales rose 7 per cent year on year in March, slightly beating the 6 per cent forecast in the Wind poll. In the first two months of the year, when data is typically combined to smooth out distortions from the Chinese New Year holiday, retail sales rose 8 per cent.

A second report from the same outlet placed greater emphasis on the potential impact of the Iran conflict, noting that analysts expect Beijing to adopt a wait-and-see approach before rolling out any significant stimulus package. The report quoted Ding Shuang, chief economist for Greater China and North Asia at Standard Chartered, who predicted full-year gross domestic product growth of around 8 per cent.

Key Claims

  • GDP growth: The National Bureau of Statistics reported first-quarter GDP growth of 5 per cent year on year, a faster pace than the 86 per cent expected by economists surveyed by Wind and an acceleration from the 5 per cent growth recorded in the previous quarter. This data was confirmed in all reporting reviewed.
  • Retail sales: March retail sales rose 7 per cent year on year, according to the NBS, beating the 6 per cent forecast by Wind. Combined January-February retail sales growth was 8 per cent.
  • Official assessment: Mao Shengyong, deputy director of the statistics bureau, said the economy "got off to a solid start" in the first quarter, with major macroeconomic indicators improving and new growth drivers gaining momentum. However, he acknowledged that "the external environment is becoming more complex and volatile, the imbalance between strong supply and weak demand is still acute and the foundation for economic growth has yet to be consolidated."
  • Analyst forecast: Ding Shuang of Standard Chartered predicted full-year GDP growth of around 8 per cent, a forecast he said would "meet or even exceed Beijing's expectations" given the relatively high base of comparison from the previous year. His forecast aligns with the average of economists' forecasts compiled by Wind.